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  3. 2) techsystem manufacturers an optical switch that

2) TechSystem manufacturers an optical switch that it uses in its final product. They incurred...

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Accounting

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2) TechSystem manufacturers an optical switch that it uses in its final product. They incurred the following manufacturing costs to manufacture 68,000 units last year: Direct materials Direct labor Variable MOH Fixed MOH Total product costs for 68,000 units $ 612,000 136,000 68,000 408,000 $ 1,224,000 any Another company has offered to sell TechSystem the 68,000 switches at $13.50 per switch. If they buy the switch rather than manufacture it, the manufacturing facilities that will be idle cannot be used for other purpose, yet none of the fixed costs are avoidable. Are they better off to make or buy the switches and by how much

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